ADH Stock Overview
Adairs Limited operates as a specialty retailer of home decoration and furnishing products in Australia and New Zealand.
Price History & Performance
|Historical stock prices|
|Current Share Price||AU$1.75|
|52 Week High||AU$4.19|
|52 Week Low||AU$1.65|
|1 Month Change||-24.46%|
|3 Month Change||-11.65%|
|1 Year Change||-55.71%|
|3 Year Change||-8.88%|
|5 Year Change||14.05%|
|Change since IPO||-34.15%|
Recent News & Updates
Adairs (ASX:ADH) Takes On Some Risk With Its Use Of Debt
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Adairs (ASX:ADH) Has Announced A Dividend Of A$0.10
Adairs Limited's ( ASX:ADH ) investors are due to receive a payment of A$0.10 per share on 22nd of September. Based on...
|ADH||AU Specialty Retail||AU Market|
Return vs Industry: ADH underperformed the Australian Specialty Retail industry which returned -22.5% over the past year.
Return vs Market: ADH underperformed the Australian Market which returned -11% over the past year.
|ADH Average Weekly Movement||8.2%|
|Specialty Retail Industry Average Movement||7.0%|
|Market Average Movement||9.6%|
|10% most volatile stocks in AU Market||16.9%|
|10% least volatile stocks in AU Market||4.3%|
Stable Share Price: ADH is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: ADH's weekly volatility (8%) has been stable over the past year.
About the Company
Adairs Limited operates as a specialty retailer of home decoration and furnishing products in Australia and New Zealand. It operates through three segments: Adairs, Mocka and Focus. The company offers bedroom products, such as bedlinen, bedding, and bedroom furniture and accessories; bathroom products, consisting of towels, bath mats, bathrobes and slippers, bathroom accessories, and laundry and home care products; furniture products, such as bedroom, office, living room, and kids furniture; homewares comprising home styling, home care and gifting, pets, and kitchen products; kid’s products, including kids bedlinen, bedding, décor, bathroom, furniture, toys, and nursery; as well as gifting products.
Adairs Fundamentals Summary
|ADH fundamental statistics|
Is ADH overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ADH income statement (TTM)|
|Cost of Revenue||AU$255.61m|
Last Reported Earnings
Jun 26, 2022
Next Earnings Date
|Earnings per share (EPS)||0.26|
|Net Profit Margin||7.95%|
How did ADH perform over the long term?See historical performance and comparison
10.3%Current Dividend Yield
Is ADH undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for ADH?
Other financial metrics that can be useful for relative valuation.
|What is ADH's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does ADH's PE Ratio compare to its peers?
|ADH PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
NCK Nick Scali
UNI Universal Store Holdings
BST Best & Less Group Holdings
Price-To-Earnings vs Peers: ADH is good value based on its Price-To-Earnings Ratio (6.7x) compared to the peer average (11.5x).
Price to Earnings Ratio vs Industry
How does ADH's PE Ratio compare vs other companies in the AU Specialty Retail Industry?
Price-To-Earnings vs Industry: ADH is good value based on its Price-To-Earnings Ratio (6.7x) compared to the Australian Specialty Retail industry average (9.3x)
Price to Earnings Ratio vs Fair Ratio
What is ADH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||6.7x|
|Fair PE Ratio||12.8x|
Price-To-Earnings vs Fair Ratio: ADH is good value based on its Price-To-Earnings Ratio (6.7x) compared to the estimated Fair Price-To-Earnings Ratio (12.8x).
Share Price vs Fair Value
What is the Fair Price of ADH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: ADH (A$1.75) is trading below our estimate of fair value (A$7.89)
Significantly Below Fair Value: ADH is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
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How is Adairs forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ADH's forecast earnings growth (9.9% per year) is above the savings rate (1.8%).
Earnings vs Market: ADH's earnings (9.9% per year) are forecast to grow faster than the Australian market (6.6% per year).
High Growth Earnings: ADH's earnings are forecast to grow, but not significantly.
Revenue vs Market: ADH's revenue (7.3% per year) is forecast to grow faster than the Australian market (3.7% per year).
High Growth Revenue: ADH's revenue (7.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ADH's Return on Equity is forecast to be high in 3 years time (24.4%)
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How has Adairs performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ADH has high quality earnings.
Growing Profit Margin: ADH's current net profit margins (8%) are lower than last year (12.8%).
Past Earnings Growth Analysis
Earnings Trend: ADH's earnings have grown by 16.8% per year over the past 5 years.
Accelerating Growth: ADH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ADH had negative earnings growth (-29.6%) over the past year, making it difficult to compare to the Specialty Retail industry average (-0.5%).
Return on Equity
High ROE: ADH's Return on Equity (22.7%) is considered high.
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How is Adairs's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: ADH's short term assets (A$156.9M) exceed its short term liabilities (A$135.3M).
Long Term Liabilities: ADH's short term assets (A$156.9M) do not cover its long term liabilities (A$294.2M).
Debt to Equity History and Analysis
Debt Level: ADH's net debt to equity ratio (46.7%) is considered high.
Reducing Debt: ADH's debt to equity ratio has increased from 41.8% to 60.3% over the past 5 years.
Debt Coverage: ADH's debt is well covered by operating cash flow (51.3%).
Interest Coverage: ADH's interest payments on its debt are well covered by EBIT (8.6x coverage).
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What is Adairs's current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ADH's dividend (10.32%) is higher than the bottom 25% of dividend payers in the Australian market (2.78%).
High Dividend: ADH's dividend (10.32%) is in the top 25% of dividend payers in the Australian market (7.03%)
Stability and Growth of Payments
Stable Dividend: ADH has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: ADH's dividend payments have increased, but the company has only paid a dividend for 7 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (68.2%), ADH's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (59.1%), ADH's dividend payments are covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Mark Ronan has been the Chief Executive Officer and Managing Director of Adairs Limited since November 18, 2016 and serves as its Executive Director. Mr. Ronan served as Chief Operating Officer of Adai...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD758.37K) is about average for companies of similar size in the Australian market ($USD606.36K).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Experienced Management: ADH's management team is considered experienced (4 years average tenure).
Experienced Board: ADH's board of directors are considered experienced (6.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|26 Nov 21||BuyAU$68,382||Kathryn Spargo||Individual||18,333||AU$3.73|
|22 Nov 21||BuyAU$5,773,476||Vinva Investment Management Limited||Company||1,468,493||AU$3.93|
|22 Nov 21||SellAU$413,938||Vinva Investment Management Limited||Company||105,110||AU$3.94|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Adairs Limited's employee growth, exchange listings and data sources
- Name: Adairs Limited
- Ticker: ADH
- Exchange: ASX
- Founded: 1918
- Industry: Homefurnishing Retail
- Sector: Retail
- Implied Market Cap: AU$298.947m
- Shares outstanding: 171.32m
- Website: https://www.adairs.com.au
- Adairs Limited
- 2 International Court
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ADH||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||Jun 2015|
|ADH||ASX (Australian Securities Exchange)||Yes||Ordinary Shares||AU||AUD||Jun 2015|
|1FQ||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Jun 2015|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/24 00:00|
|End of Day Share Price||2022/09/23 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.